Trading as entertainment Daniel Dorn (Drexel University) Paul Sengm ü ller (UvA Business School) Research questions Can entertainment motives help explain variation in trading activity across people? What is the magnitude of entertainment-motivated trading?

Unimportant accounts? • Perhaps people who enjoy investing/gambling have more accounts elsewhere, e.g., full-service accounts • Overall, their trading activity may be similar to those of their peers, but they trade more in discount accounts

Overconfidence • Only agreement with 1. “better than average” is positively correlated with trading activity (see also Glaser and Weber) • Inclusion of overconfidence attributes does not affect coefficients of entertainment attributes in multivariate regression

Conclusion • Entertainment motives appear to be important drivers of variation in trading activity across people • Trading may be hazardous to your wealth, but welfare implications are not that obvious • Does the availability of entertainment alternatives affect noise trader activity?